Video On Demand Market Surges to USD 480.54 Billion by 2032 Driven by Streaming Boom and Personalized Entertainment Demand | SNS Insider

The Video On Demand Market, valued at USD 146 billion in 2023, is expected to reach USD 480.54 billion by 2032, growing at a CAGR of 14.21% from 2024 to 2032. This growth reflects the dramatic transformation of consumer viewing habits, with millions shifting from cable and satellite TV to digital platforms offering flexibility, convenience, and a vast array of content choices.

The global expansion of high-speed internet, coupled with the widespread use of smartphones and smart TVs, has made streaming accessible to audiences everywhere. Consumers are demanding instant access to a wide variety of media—including movies, TV shows, sports, documentaries, and live events—driving major investments in content production and platform innovation. In 2024, the global OTT user base is projected to reach 3.71 billion, spending over 17 hours weekly on streaming content. In line with this surge, major media companies are launching new services such as Fox Corporation’s Tubi in the UK, reflecting the global appetite for cost-effective, ad-supported entertainment.

Download PDF Sample of Video On Demand Market @ https://www.snsinsider.com/sample-request/3770

Key Drivers

1. Increasing Consumer Preference for On-Demand Entertainment

The convenience of watching content anytime and anywhere has reshaped global viewing behavior. Traditional broadcast schedules no longer appeal to consumers who value control, flexibility, and choice. Platforms like Netflix, Hulu, and Amazon Prime Video have capitalized on this trend by providing vast, customizable libraries that cater to all demographics. The ability to binge-watch, skip ads, and pause content has enhanced the consumer experience, resulting in soaring subscription numbers and user engagement. This transition from linear TV to on-demand digital streaming continues to fuel market expansion.

2. Rise of Subscription and Advertising Models

Revenue generation in the Video On Demand market is primarily driven by subscription-based (SVOD) and advertising-supported (AVOD) models.

SVOD platforms such as Netflix, Disney+, and Amazon Prime Video provide unlimited access for a monthly fee, ensuring predictable revenue and customer retention.

AVOD platforms like YouTube and Peacock offer free or low-cost access supported by targeted ads, appealing to price-sensitive users and advertisers alike.

This dual revenue approach enables streaming services to reach a broader audience, strengthen brand loyalty, and maintain steady cash flow while offering flexibility to viewers.

Segment Analysis

By Offering Type

The Solutions segment held about 65% of total revenue in 2023, driven by the increasing adoption of integrated VOD platforms that enable seamless content distribution and management. Media and entertainment companies rely on these platforms for scalable streaming, content analytics, and personalized interfaces.

The Services segment is projected to grow at a CAGR of 15.56% through 2032, driven by rising demand for technical support, content licensing, and platform integration. The growing focus on user experience and operational efficiency is accelerating the adoption of professional VOD services.

By Monetization Model

The Subscription Video on Demand (SVOD) model dominated with a 57% market share in 2023. Consumers increasingly prefer ad-free content and are willing to pay for high-quality, exclusive programming. Platforms offering original content and localized shows have seen record subscriber retention rates.

Meanwhile, the Advertising-Supported Video on Demand (AVOD) model is expected to register the fastest CAGR of 16.89% during the forecast period. With advertisers turning to digital platforms for precision targeting, AVOD services provide a cost-effective, scalable alternative for both users and brands.

By Platform Type

Smart TVs accounted for over 51% of market revenue in 2023, as consumers prefer large-screen, high-definition experiences for streaming content. The growing integration of built-in streaming apps and advanced operating systems has made Smart TVs a key driver in VOD adoption.

The Smartphones segment is projected to grow at a CAGR of 15.84% through 2032, supported by the global rise in mobile internet users and affordable smartphones. Mobile-first viewing has become integral to modern entertainment, with users streaming content anytime, anywhere.

By Content Type

Movies dominated the VOD market in 2023 with a 40% revenue share, fueled by demand for instant access to both new releases and classic titles. Streaming platforms are investing heavily in exclusive film releases to attract global audiences.

The Educational and Fitness Programs segment is expected to expand at the fastest CAGR of 18.41% from 2024–2032. Increasing consumer interest in online learning, self-improvement, and virtual wellness content is driving this trend. The integration of AI-driven recommendations and interactive sessions enhances user engagement in this growing segment.

Regional Analysis

North America

North America dominated the global Video On Demand market with 43% of total revenue in 2023, supported by a high concentration of industry leaders such as Netflix, Amazon Prime, and Hulu. Strong internet connectivity, mature content ecosystems, and a culture of digital entertainment make this region the global hub for streaming innovation.

Asia Pacific

The Asia Pacific region is expected to record the fastest CAGR of 15.94% through 2032. Rapid digitalization, growing smartphone adoption, and expanding middle-class populations are key growth drivers. Local content creation and partnerships with telecom providers are fueling VOD adoption in emerging economies such as India, China, and Indonesia, positioning APAC as a major future growth region.

Buy Full Research Report @ https://www.snsinsider.com/checkout/3770

Key players shaping the global Video On Demand Market include:

Netflix, Amazon, Google, Disney, Apple, Warner Bros Discovery, Comcast, Paramount Global, Sony, Fox Corporation, Facebook, Verizon, Roku, Reliance Jio, Sky, DirecTV, Fujitsu, Vubiquity Inc., and Dacast Inc.

These companies continue to innovate through content diversification, strategic mergers, advanced analytics, and AI-driven personalization, further intensifying competition and enhancing consumer choice.

Conclusion

The Video On Demand Market continues to redefine global entertainment consumption, replacing linear broadcasting with personalized, on-demand experiences. As streaming platforms invest in content innovation, flexible pricing models, and global expansion, the market is poised for unprecedented growth. With evolving consumer preferences and technological advancements, the Video On Demand industry will remain a cornerstone of the digital entertainment revolution, driving engagement, accessibility, and profitability well into the next decade.

Related Report: 

Video Streaming Market

Online Video Platform Market

Video Streaming Software Market

About Us:

SNS Insider is one of the leading market research and consulting agencies that dominates the market research industry globally. Our company's aim is to give clients the knowledge they require in order to function in changing circumstances. In order to give you current, accurate market data, consumer insights, and opinions so that you can make decisions with confidence, we employ a variety of techniques, including surveys, video talks, and focus groups around the world.